Down a buck, no news, no volume (relatively speaking), after dropping into the $22's and recovering to near $25 within a few days last week. If you were lucky I suppose you could have bought and sold these moves, but why would you be sitting there Friday and expect this to happen Monday? I thought it would creep up a bit today. Sometimes the market makes zero sense, unless it was that scary Pittsburgh law firm issuing a press release today, you know, the one investing . . . EVERYONE.
For what's it's worth, I suppose you could pass off today as a buyer's strike, no one willing to pick up big blocks in the face of some large trades late, but who knows.
Perhaps it's a good time to look a bit further ahead than a day, a week, or a month. LINE is run by very intelligent people, good people. With or without a BRY merger, LINE will continue to make prudent acquisitions, grow the business, and continue handsome returns. Take a breath.
I would add they have assembled really excellent assets. Ethane is very valuable and at some point our economy will be able to utilize it.
We get some much need rationalization or better yet elimination of the corn ethanol corruption and the ngl discounts will disappear over night.
Today, all interest-rate sensitive stocks took a hit in tandem due to an upward spike in the Treasury notes. LINE was not alone in getting hit pretty hard and, in this case, the hit was not company specific.
Well, maybe. But if you look back in history, upstreams were trading at about the same yield before the financial crisis drove rates down. Of course, these MLP's are relatively young, but in 2006 LINE paid $2.18, and by the end of that year it was trading above $25, high 8's yield. In 2007 it paid $2.52 and traded as high as $40. It started downhill rapidly in late 2007 and into 2008, before the financial crisis really started to pinch, but that was a period in which interest rates were falling dramatically. Note LINE continued to fall even though energy prices spiked.
So history doesn't really have much to say about high-yield MLP's and interest rates. They may be attractive enough, in terms of yield, inflation protection and tax shelter, that within reason, and unless fed rates were to climb in Carter-era terms (which logically would mean inlfation as well), perhaps there isn't that much of a link.
Couldn't agree more. One needs to pay attention to what is happening around one and that it was said that people are going to the side lines as well. I made note yesterday that the 10 yr. is getting close to 3% Class class class pay attention. Just because you own a high yielding stock doesn't mean the world is all fine.
Finally sensible replies to questions posted. LINE and LNCO are trading now simply as interest rate sensitive stocks until news of the SEC investigation and merger comes out.